Analyst Consensus ?
ConsensusHold34 ratings
Bullish1647.1%
Neutral1750.0%
Bearish12.9%
1 unmapped firm rating excluded from the percentages.
Paycom Software, Inc. · PAYC · FY2026 Q1 · Calendar Q2 2026
Paycom Beats Estimates as AI Automation Drives Revenue and Margin Expansion
Paycom's Q1 FY2026 results demonstrate that its AI and automation product suite — Beti, GONE, and IWant — is translating into measurable client ROI, revenue growth, and margin expansion. Revenue grew 8% year-over-year to $572 million with recurring revenue up 9% and a 50 basis-point adjusted EBITDA margin expansion. The company beat both revenue and EPS estimates, yet reaffirmed rather than raised full-year guidance, maintaining its 6.5% revenue growth outlook. A new $2 billion share buyback authorization and dividend increase underscore strong cash generation and management confidence. IWant AI usage surged 33% since Q4, indicating accelerating product adoption. The market responded strongly, with shares up 9.6% on the print versus a flat benchmark, on 2.5x normal volume. The central question going forward is whether AI-driven automation can sustain growth momentum while the company…
Reported After market closeNYSETechnology
$8.81B market cap
100quality score
Company context
Snapshot as of publicationPaycom Software, Inc., established in 1998 and headquartered in Oklahoma City, Oklahoma, provides a comprehensive, cloud-based human capital management (HCM) platform. This software-as-a-service (SaaS) solution is specifically tailored for small to mid-sized businesses across the United States. It equips organizations with the essential functionality and analytical insights needed to oversee the complete employee journey, from the initial hiring process through to retirement. The robust HCM suite encompasses a wide array of applications across several critical HR domains. For talent acquisition and onboarding, it offers tools such as applicant tracking, candidate management, background checks, seamless onboarding processes, E-Verify compliance, and tax credit services.…
Earnings scorecard
Reported versus consensus
Reported EPS
$3.15
Consensus $3
EPS surprise
+5.4%
Reported versus consensus
Reported revenue
$571.9M
Consensus $564.4M
Revenue surprise
+1.3%
Reported versus consensus
Earnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$163.96Current
$115Low
$250.72Average
$550High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Jul 31, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Barclays | Equal Weight | Equal Weight | Maintain | Jul 21, 2026 |
| TD Cowen | Buy | Buy | Maintain | Jun 26, 2026 |
| Mizuho | Neutral | Neutral | Maintain | May 7, 2026 |
| Citigroup | Neutral | Neutral | Maintain | May 7, 2026 |
| BTIG | Buy | Buy | Maintain | May 7, 2026 |
| UBS | Buy | Buy | Maintain | Apr 21, 2026 |
| Cantor Fitzgerald | Neutral | Neutral | Maintain | Mar 6, 2026 |
| Keybanc | Overweight | Overweight | Maintain | Feb 12, 2026 |
| Jefferies | Hold | Hold | Maintain | Feb 12, 2026 |
| Guggenheim | Buy | Buy | Maintain | Feb 12, 2026 |
| BMO Capital | Market Perform | Market Perform | Maintain | Feb 12, 2026 |
| JP Morgan | Neutral | Neutral | Maintain | Nov 6, 2025 |
| Stifel | Hold | Hold | Maintain | May 8, 2025 |
| Piper Sandler | Neutral | Neutral | Maintain | May 8, 2025 |
| Needham | Hold | Hold | Maintain | May 8, 2025 |
| B of A Securities | Neutral | Buy | Downgrade | Nov 2, 2023 |
| William Blair | Market Perform | Outperform | Downgrade | Nov 1, 2023 |
| Oppenheimer | Perform | Outperform | Downgrade | Nov 1, 2023 |
| Deutsche Bank | Hold | Buy | Downgrade | Nov 1, 2023 |
| Credit Suisse | Outperform | Outperform | Maintain | Aug 2, 2023 |
| Baird | Outperform | Outperform | Maintain | Aug 2, 2023 |
| DA Davidson | Buy | Neutral | Upgrade | Mar 30, 2023 |
| MoffettNathanson | Underperform | Underperform | Maintain | Jan 9, 2023 |
| Wolfe Research | Outperform | Outperform | Maintain | Nov 2, 2022 |
| RBC Capital | Outperform | Outperform | Maintain | Feb 11, 2021 |
| Cowen & Co. | Outperform | Outperform | Maintain | Feb 11, 2021 |
| Stifel Nicolaus | Hold | Hold | Maintain | Oct 30, 2019 |
| Citi | Buy | Buy | Maintain | Oct 25, 2019 |
| Canaccord Genuity | Hold | Hold | Maintain | May 2, 2019 |
| Bank of America | Neutral | Buy | Downgrade | Sep 26, 2018 |
| Dougherty | Buy | Buy | Maintain | Oct 31, 2017 |
| Wells Fargo | Outperform | Outperform | Maintain | May 12, 2017 |
| Wunderlich | Buy | Buy | Maintain | Feb 23, 2017 |
| Pacific Crest | Overweight | Downgrade | Jan 30, 2017 | |
| Brean Capital | Buy | Buy | Maintain | Mar 17, 2015 |
Named analyst price targets
Upside is calculated against the persisted current price $163.96. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Barclays | Analyst unavailable | $154 | $149.71 | -6.1% | Jul 21, 2026 |
| Deutsche Bank | Analyst unavailable | $140 | $132.94 | -14.6% | May 7, 2026 |
| BTIG | Analyst unavailable | $160 | $133.01 | -2.4% | May 7, 2026 |
| Mizuho Securities | Siti Panigrahi | $130 | $126.32 | -20.7% | May 7, 2026 |
| Barclays | Raimo Lenschow | $148 | $126.32 | -9.7% | May 7, 2026 |
| UBS | Analyst unavailable | $183 | $134.94 | +11.6% | Apr 21, 2026 |
| Cantor Fitzgerald | Analyst unavailable | $115 | $114.54 | -29.9% | Feb 12, 2026 |
| BMO Capital | Analyst unavailable | $137 | $118.6 | -16.4% | Feb 12, 2026 |
| Stifel Nicolaus | Analyst unavailable | $120 | $115.38 | -26.8% | Feb 12, 2026 |
| Barclays | Analyst unavailable | $140 | $115.72 | -14.6% | Feb 12, 2026 |
| Robert W. Baird | Mark Marcon | $183 | $115.68 | +11.6% | Feb 12, 2026 |
| BTIG | Allan Verkhovski | $140 | $118.77 | -14.6% | Feb 12, 2026 |
| KeyBanc | Analyst unavailable | $195 | $118.77 | +18.9% | Feb 12, 2026 |
| Mizuho Securities | Siti Panigrahi | $120 | $118.77 | -26.8% | Feb 12, 2026 |
| Guggenheim | Jacob Smith | $180 | $118.77 | +9.8% | Feb 12, 2026 |
| Jefferies | Analyst unavailable | $130 | $118.77 | -20.7% | Feb 12, 2026 |
| Guggenheim | Analyst unavailable | $210 | $133.95 | +28.1% | Jan 30, 2026 |
| Cantor Fitzgerald | Matthew VanVliet | $135 | $139.65 | -17.7% | Jan 29, 2026 |
| UBS | Kevin McVeigh | $210 | $146.73 | +28.1% | Jan 26, 2026 |
| BMO Capital | Daniel Jester | $175 | $149.49 | +6.7% | Jan 16, 2026 |
| Barclays | Analyst unavailable | $185 | $157.17 | +12.8% | Jan 12, 2026 |
| BTIG | Analyst unavailable | $195 | $162.77 | +18.9% | Dec 16, 2025 |
| UBS | Analyst unavailable | $165 | $161.91 | +0.6% | Nov 6, 2025 |
| Barclays | Analyst unavailable | $225 | $201.09 | +37.2% | Oct 21, 2025 |
| Jefferies | Analyst unavailable | $225 | $199.82 | +37.2% | Oct 13, 2025 |
| Guggenheim | Analyst unavailable | $270 | $214.85 | +64.7% | Sep 25, 2025 |
| UBS | Analyst unavailable | $285 | $213.32 | +73.8% | Sep 16, 2025 |
| KeyBanc | Jason Celino | $290 | $244.82 | +76.9% | Aug 7, 2025 |
| KeyBanc | Analyst unavailable | $245 | $213.02 | +49.4% | Mar 10, 2025 |
| Barclays | Raimo Lenschow | $221 | $207.57 | +34.8% | Jan 23, 2025 |
| BMO Capital | Daniel Jester | $197 | $209.03 | +20.2% | Oct 31, 2024 |
| Piper Sandler | Arvind Ramnani | $191 | $172.25 | +16.5% | Oct 31, 2024 |
| Jefferies | Samad Samana | $175 | $172.25 | +6.7% | Oct 31, 2024 |
| Barclays | Raimo Lenschow | $167 | $166.79 | +1.9% | Aug 1, 2024 |
| Barclays | Raimo Lenschow | $184 | $144.76 | +12.2% | May 31, 2024 |
| Mizuho Securities | Siti Panigrahi | $170 | $171.29 | +3.7% | May 6, 2024 |
| Barclays | Raimo Lenschow | $200 | $150.69 | +22.0% | Nov 1, 2023 |
| Barclays | Analyst unavailable | $336 | $314.91 | +104.9% | Feb 8, 2023 |
| Oppenheimer | Analyst unavailable | $400 | $344.52 | +144.0% | Feb 8, 2023 |
| Piper Sandler | Analyst unavailable | $417 | $344.52 | +154.3% | Feb 8, 2023 |
| MoffettNathanson | Analyst unavailable | $310 | $290.69 | +89.1% | Jan 9, 2023 |
| Citigroup | Steve Enders | $400 | $342.71 | +144.0% | Nov 2, 2022 |
| Wolfe Research | Analyst unavailable | $400 | $352.33 | +144.0% | Aug 4, 2022 |
| BMO Capital | Daniel Jester | $368 | $353.19 | +124.4% | Aug 3, 2022 |
| Credit Suisse | Analyst unavailable | $375 | $348.16 | +128.7% | Aug 3, 2022 |
| Oppenheimer | Analyst unavailable | $375 | $337.86 | +128.7% | Aug 3, 2022 |
| Piper Sandler | Analyst unavailable | $387 | $337.86 | +136.0% | Aug 3, 2022 |
| Barclays | Analyst unavailable | $308 | $309.9 | +87.9% | Jul 18, 2022 |
| Piper Sandler | Analyst unavailable | $361 | $301.83 | +120.2% | Jul 18, 2022 |
| KeyBanc | Josh Beck | $340 | $280.54 | +107.4% | Jun 23, 2022 |
| Jefferies | Analyst unavailable | $335 | $269.82 | +104.3% | May 23, 2022 |
| Needham | Ryan MacDonald | $450 | $328.2 | +174.5% | May 4, 2022 |
| Oppenheimer | Analyst unavailable | $350 | $288.46 | +113.5% | May 4, 2022 |
| Robert W. Baird | Mark Marcon | $440 | $335.01 | +168.4% | Feb 8, 2022 |
| Deutsche Bank | Bhavin Shah | $450 | $335.01 | +174.5% | Feb 8, 2022 |
| Mizuho Securities | Siti Panigrahi | $350 | $335.01 | +113.5% | Feb 8, 2022 |
| KeyBanc | Josh Beck | $400 | $304.67 | +144.0% | Jan 25, 2022 |
| Barclays | Raimo Lenschow | $380 | $328.27 | +131.8% | Jan 20, 2022 |
| Cowen & Co. | Bryan Bergin | $550 | $521.17 | +235.4% | Oct 18, 2021 |
| RBC Capital | Matthew Hedberg | $430 | $341.09 | +162.3% | May 5, 2021 |
Track every rating change on PAYC the moment it posts. Free to start.
Start freeMarket reaction
event-close to next-session close
Stock move
+9.6%
Event window
SPY move
-0.3%
Same window
Abnormal move
+9.9%
Stock minus SPY
Volume
2.5×
Versus trailing sessions
Subsequent drift
-0.6%
Up to 20 sessions
PAYCSPY benchmark
Follow PAYC with an agent that reads every filing, transcript, and price print. Free to start.
Try FN2 freeTranscript intelligence
What changed
PAYC reported Q1 FY2026 revenue of $571.9 million (up 8% YoY), beating the $564.4 million consensus by 1.3%. EPS of $3.15 exceeded the $2.99 estimate by 5.4%. Adjusted EBITDA margin expanded 50 basis points year-over-year, and recurring revenue grew 9%. The company announced a new $2 billion share repurchase authorization replacing the prior program, alongside a dividend increase. IWant AI usage increased 33% since the end of Q4 2025. The stock surged 9.6% in the session following the print — an abnormal return of approximately 9.9% relative to a 0.3% SPY decline — on 2.5x normal trading volume. Subsequent drift over the following session was modestly negative at -0.6%.
Guidance delta
Management reaffirmed full-year FY2026 guidance at approximately 6.5% revenue growth and adjusted EBITDA margin near 44%, unchanged from the prior quarter's outlook. No upward revision accompanied the Q1 beat, though the reaffirmation alongside strong execution signals confidence in the trajectory.
Key takeaways
- Q1 revenue of $572M grew 8% YoY, beating consensus by 1.3%; EPS of $3.15 beat the $2.99 estimate by 5.4%.
- Adjusted EBITDA margin expanded 50 basis points year-over-year, reflecting operational leverage from automation.
- Recurring revenue grew 9%, outpacing total revenue growth and indicating durable subscription momentum.
- New $2B share buyback authorization and dividend increase signal strong cash generation and capital return commitment.
- IWant AI usage increased 33% since the end of Q4 2025, suggesting accelerating product adoption.
- Full-year guidance reaffirmed at approximately 6.5% revenue growth with management expressing confidence in the outlook.
Management priorities
- Continue rolling out additional AI and automation capabilities across the platform.
- Develop and launch new AI-driven products beyond IWant.
- Expand sales capacity and improve ramp speed for new representatives.
- Maintain opportunistic share-repurchase strategy tied to stock price.
- Attend upcoming investor conferences including Jefferies, Baird, and Mizuho.
Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-31T20:41:30.427015+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-31T20:41:30.424243+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated . For educational purposes only; not investment advice.